The 200 hour MA at $1297 remains a key target level below
The price of gold moved up to test the 38.2% of the move down from the Feb 20 high at the $1306.24 level. Near that level is the high from Friday at $1306.48 (the high today reached $1306.80).
The inability to break the high and the 38.2% and run higher has the buyers feeling a bit left out The price is currently trading around the $1303 level.
The 100 hour MA is down at $1302.41 and although the price has traded above and below that MA line over the last few hours of trading, I give the sellers more control.
- They had shots to move above the 38.2% today and on Friday and failed.
- The price has moved below the 100 hour MA.
- The USD has erased earlier declines (tends to weaken gold).
Getting back below the 100 hour MA would make that view more plausible and then the traders can shoot for the 200 hour MA below at $1297, which also stalled extremes – these at the lows on Thursday and Friday. If that MA can be broken – and stay broken – the sellers could be on their way to making another run for the lows this week.